All work and no extra pay

By Kirsty Needham

18 November 2009 — 12:00am

ALREADY working the longest week in the Western world, Australians have now been revealed to be working more hours in unpaid overtime than their annual holiday entitlement, and white-collar workers are carrying the burden of the free time being taken by the boss, an Australia Institute study shows.

Once Australia led the world in advocating shorter hours, with Melbourne stonemasons the first to gain an eight-hour day in 1856.

That culture has been tipped on its head, as OECD figures show Australians work the longest week of any developed country - an average 44 hours.

More and more of those long hours are being worked for nothing.

Total unpaid overtime worked is the equivalent of 1.16 million new full-time jobs that have not been created. That equates to $72 billion in lost wages - money that could be taxed.

''In an economy where unemployment is rising, overwork is an obvious area for government to address,'' said Richard Denniss, the institute's executive director.

The study found 44 per cent of people who work unpaid overtime said it was compulsory, while 43 per cent said it was not discouraged.